DOE warns of high power prices during dry months

By Alena Mae S. Flores – March 13, 2023, 8:50 pm
from manilastandard.net

The Department of Energy warned of possible higher electricity rates during the dry months in case a tight supply would necessitate the operation of oil-based power plants.

“If we are going to run the oil-based power plants, then it will necessarily cause an increase in power prices,” Energy Secretary Raphael Lotilla said at the sidelines of the Makati Business Club’s F2F with Cab Secs Forum.

Lotilla said the DOE is seeking everyone’s cooperation, given the anticipated yellow alerts expected during the dry months. “It’s not the case where it is inevitable, but after looking at the available supply and the maintenance schedules of power plants, it is something we are asking everyone’s cooperation to manage,” he said.

Lotilla underscored the need for demand-side management such as avoiding using electricity during peak hours.

“If demand is high, the plants that we will have to run are oil-based power plants. And if you use oil, as you know, the prices are much higher than the use of other fuels,” Lotilla said.